Hub Group, Inc. reported its financial results for the first quarter of 2025, revealing a total operating revenue of $915.2 million, a decrease of 8% from $999.5 million in the same period of 2024. The company's operating income remained relatively stable, increasing slightly to $37.3 million from $37.1 million year-over-year. Net income attributable to Hub Group was $26.8 million, compared to $27.1 million in the prior year, resulting in basic earnings per share of $0.45, up from $0.44.
The decline in revenue was primarily attributed to a 14% decrease in the Logistics segment, which generated $411 million, driven by lower volumes and revenue per load in the brokerage business. Conversely, the Intermodal and Transportation Solutions (ITS) segment saw a smaller revenue decline of 4%, totaling $530 million, supported by an 8% increase in intermodal volumes. The ITS segment's operating income improved to $14 million, reflecting effective cost control measures and reduced dedicated start-up costs.
In terms of strategic developments, Hub Group completed the acquisition of a controlling interest in EASO, a logistics provider based in Mexico, for approximately $55 million. This acquisition is expected to enhance Hub's intermodal and transportation solutions, particularly in cross-border trade, as EASO operates a network of terminals across Mexico and the U.S. The integration of EASO is ongoing, and its financial results are included in Hub's ITS segment.
Operationally, Hub Group's headcount increased to 6,386 employees as of March 31, 2025, up from 5,897 a year earlier, reflecting the addition of personnel related to the EASO acquisition. The company also reported a cash balance of $112.7 million, alongside $28.4 million in restricted cash. Cash provided by operating activities was $70 million, a decrease from $81 million in the previous year, primarily due to changes in operating assets and liabilities.
Looking ahead, Hub Group anticipates challenges from inflation, increased healthcare costs, and potential economic slowdowns affecting consumer spending. However, the company also sees opportunities for growth through improved shipping demand and operational efficiencies. The management remains focused on margin enhancement projects and expects capital expenditures in 2025 to range between $40 million and $50 million, primarily for replacing aging equipment and technology investments.
About Hub Group, Inc.
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